Providing business plan, liquidity, and performance improvement advisory for a leading publisher​

Picture this...

You’re a $300M children’s publishing company in agreements with the majority of the largest children’s licensors, supplying product to more than 81K retail outlets worldwide including big box, discount, club, grocery, drug, convenience, and more. Since 2001, as the country’s leading producer of coloring and activity books, you’ve brought the characters kids love to life with creative, hands-on products that encourage imagination and fun. Unfortunately, you’re suffering declining sales due to changes in leadership and marketing strategy, resulting in defaults on your credit agreements and a liquidity crisis.​

You turn to Accordion.

The senior lender group engages our team to risk assess the company’s 2019 business plan, near term liquidity needs, factoring arrangements, working capital utilization, sales prospects, and the amendment of a $110M senior credit facility. From there, we: ​

• Provide financial advisory services to the lender in light of underperformance, liquidity issues and a default on credit agreements.​
• Execute a comprehensive business plan review. ​
• Prepare a preliminary valuation analysis.​
• Develop a liquidity forecasting model to advise on factoring and proposed covenant thresholds. ​

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The assessment identifies and values numerous areas of risk and opportunity in your company’s initiatives to improve performance, liquidity, and the overall business plan. You take on the performance improvement initiatives and we continue to engage in monitoring performance against the business plan and the subsequent results. ​

Your value is enhanced.

We advise the lenders in providing capital and renegotiating covenants, rather than forcing an immediate sale of the company. Ultimately, your company continues to improve, and the lenders are refinanced for a full recovery. ​